company background image
NE

Noble NYSE:NE Stock Report

Last Price

US$29.82

Market Cap

US$1.9b

7D

-0.6%

1Y

42.7%

Updated

07 Aug, 2022

Data

Company Financials +
NE fundamental analysis
Snowflake Score
Valuation6/6
Future Growth6/6
Past Performance2/6
Financial Health4/6
Dividends0/6

NE Stock Overview

Noble Corporation, together with its subsidiaries, operates as an offshore drilling contractor for the oil and gas industry worldwide.

Noble Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Noble
Historical stock prices
Current Share PriceUS$29.82
52 Week HighUS$38.59
52 Week LowUS$20.43
Beta0
1 Month Change8.79%
3 Month Change-5.93%
1 Year Change42.75%
3 Year Changen/a
5 Year Changen/a
Change since IPO20.49%

Recent News & Updates

Jun 24

Noble Corporation - Required Jackup Sale To Shelf Drilling Looks Just Bad

Discussing proposed $375 million sale of five modern jackup rigs to competitor Shelf Drilling. Noble appears to be on the receiving end of the deal with Shelf Drilling picking up a fully operational subsidiary with sizeable backlog at a bargain price. Divestment has been required by the UK antitrust watchdog. As a result, anticipated closing of the merger has been delayed to the end of Q3. Frankly speaking, I would have preferred Noble to avoid this fire sale and rather terminate the merger with Maersk Drilling but both companies have been steadfast in their commitment to the transaction. Two weeks ago, I would have likely downgraded Noble based on the disappointing divestment terms but after the recent 30% sell-off, I decided to keep my "buy" rating on the shares.

Shareholder Returns

NEUS Energy ServicesUS Market
7D-0.6%-6.1%1.0%
1Y42.7%22.2%-12.9%

Return vs Industry: NE exceeded the US Energy Services industry which returned 22.2% over the past year.

Return vs Market: NE exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is NE's price volatile compared to industry and market?
NE volatility
NE Average Weekly Movement9.0%
Energy Services Industry Average Movement9.6%
Market Average Movement7.9%
10% most volatile stocks in US Market17.2%
10% least volatile stocks in US Market3.2%

Stable Share Price: NE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: NE's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19211,800Robert Eiflerhttps://www.noblecorp.com

Noble Corporation, together with its subsidiaries, operates as an offshore drilling contractor for the oil and gas industry worldwide. The company provides contract drilling services to the oil and gas industry through its fleet of mobile offshore drilling units. As of February 16, 2022, it operated a fleet of 20 offshore drilling units, which included 12 floaters and 8 jackups.

Noble Fundamentals Summary

How do Noble's earnings and revenue compare to its market cap?
NE fundamental statistics
Market CapUS$1.94b
Earnings (TTM)US$83.55m
Revenue (TTM)US$818.54m

23.2x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NE income statement (TTM)
RevenueUS$818.54m
Cost of RevenueUS$725.94m
Gross ProfitUS$92.60m
Other ExpensesUS$9.05m
EarningsUS$83.55m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 08, 2022

Earnings per share (EPS)1.28
Gross Margin11.31%
Net Profit Margin10.21%
Debt/Equity Ratio14.7%

How did NE perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is NE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NE?

Other financial metrics that can be useful for relative valuation.

NE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA22.6x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does NE's PE Ratio compare to its peers?

NE PE Ratio vs Peers
The above table shows the PE ratio for NE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average44.5x
VAL Valaris
78.3x77.6%US$3.6b
RES RPC
19.7x27.2%US$1.6b
NEX NexTier Oilfield Solutions
48x60.3%US$2.1b
WHD Cactus
31.8x36.5%US$3.0b
NE Noble
23.2x83.5%US$1.9b

Price-To-Earnings vs Peers: NE is good value based on its Price-To-Earnings Ratio (23.2x) compared to the peer average (44.5x).


Price to Earnings Ratio vs Industry

How does NE's PE Ratio compare vs other companies in the US Energy Services Industry?

Price-To-Earnings vs Industry: NE is good value based on its Price-To-Earnings Ratio (23.2x) compared to the US Energy Services industry average (34x)


Price to Earnings Ratio vs Fair Ratio

What is NE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.2x
Fair PE Ratio53.1x

Price-To-Earnings vs Fair Ratio: NE is good value based on its Price-To-Earnings Ratio (23.2x) compared to the estimated Fair Price-To-Earnings Ratio (53.1x).


Share Price vs Fair Value

What is the Fair Price of NE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NE ($29.82) is trading below our estimate of fair value ($329.31)

Significantly Below Fair Value: NE is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is Noble forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


83.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NE's forecast earnings growth (83.5% per year) is above the savings rate (1.9%).

Earnings vs Market: NE's earnings (83.5% per year) are forecast to grow faster than the US market (12.9% per year).

High Growth Earnings: NE's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NE's revenue (41.6% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: NE's revenue (41.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NE's Return on Equity is forecast to be high in 3 years time (23.1%)


Discover growth companies

Past Performance

How has Noble performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-9.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NE has a high level of non-cash earnings.

Growing Profit Margin: NE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NE has become profitable over the past 5 years, growing earnings by -9.2% per year.

Accelerating Growth: NE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (140.2%).


Return on Equity

High ROE: NE's Return on Equity (5.7%) is considered low.


Discover strong past performing companies

Financial Health

How is Noble's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NE's short term assets ($418.0M) exceed its short term liabilities ($234.1M).

Long Term Liabilities: NE's short term assets ($418.0M) exceed its long term liabilities ($333.8M).


Debt to Equity History and Analysis

Debt Level: NE's net debt to equity ratio (7.6%) is considered satisfactory.

Reducing Debt: NE's debt to equity ratio has reduced from 65.4% to 14.7% over the past 5 years.

Debt Coverage: NE's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if NE's interest payments on its debt are well covered by EBIT.


Balance Sheet


Discover healthy companies

Dividend

What is Noble current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate NE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NE's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NE has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Robert Eifler (42 yo)

2.25yrs

Tenure

US$25,286,141

Compensation

Mr. Robert W. Eifler serves as President and Chief Executive Officer at Noble Corporation since May 2020 and served as its Senior Vice President, Commercial since August 2019 until May 2020. He serves as D...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD25.29M) is above average for companies of similar size in the US market ($USD5.42M).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: NE's management team is considered experienced (2.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.1%.


Top Shareholders

Company Information

Noble Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Noble Corporation
  • Ticker: NE
  • Exchange: NYSE
  • Founded: 1921
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Implied Market Cap: US$1.939b
  • Shares outstanding: 65.04m
  • Website: https://www.noblecorp.com

Number of Employees


Location

  • Noble Corporation
  • 13135 Dairy Ashford
  • Suite 800
  • Sugar Land
  • Texas
  • 77478
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.